2021 Child Tax Credit

[crystalPP]

Hi there,

Got so confused here. We have two kids, both are under 6.

In 2020, we have $2000*2=$4000 child tax credit, which is very straightforward.

In 2021, my husband and I got $1000 each for advanced child tax credit, starting Jul. So total is $2000.

It's supposed to be $3600 per child for 2021 and we should get the remaining credit ($3600*2-$2000=$5200). However, in the summary, it shows we have $0 child and Other Dependent Tax Credit and $2000 additional Child Tax Credit.

Is there something wrong? Someone can help? Thanks very much!

[JamesG1]

It sounds like you have entered the children as dependents but not as qualifying children.

• Click on My Info on the left side of the screen. 
• Click Edit to the right of each child and answer the questions. 
• Then return to Federal / Deductions & Credits / Advance payments, Child and Other Dependent Tax Credits.
• Click Edit / Add and answer the questions. 
• At the end you should see Congrats, you get a tax break.

For tax year 2021, a qualifying child is an individual who does not turn 18 before January 1, 2022, and who satisfies the following conditions:

• The individual is the taxpayer’s son, daughter, stepchild, eligible foster child, brother, sister, stepbrother, stepsister, half-brother, half-sister, or a descendant of any of them (for example, a grandchild, niece, or nephew).
• The individual does not provide more than one-half of his or her own support during 2021.
• The individual lives with the taxpayer for more than one-half of tax year 2021.
• The individual is properly claimed as the taxpayer’s dependent.
• The individual does not file a joint return with the individual’s spouse for tax year 2021 or files it only to claim a refund of withheld income tax or estimated tax paid.
• The individual was a U.S. citizen, U.S. national, or U.S. resident alien.

[crystalPP]

Thank you.

I double checked and everything is right, it does say you qualify a tax credit after I enter kids' information.

Now I only have $2000 appear as additional child tax credit, but the regular item (child tax credit) is $0.

Is this credit related to the total income change?

[DawnC]

The credit does decrease if your income is too high.  I don't think think the dependents are both showing as qualified children.   Were both kids 5 or younger on 12/31/21?   If so your total credit should be the $5200 as you described.    On the Form 1040 in the dependents section, is there a checkmark for both of them in the Child Tax Credit column (4)?   

Are you using the 2021 TurboTax desktop program?  

You qualify for the full credit if your modified adjusted gross income (AGI) is less than,

• $150,000 if you're Married Filing Jointly or a Qualifying Widow
• $112,500 if you're filing as Head of Household, or
• $75,000 if you're Married Filing Separately or Single

If your AGI is above those amounts

If your AGI is higher than the amounts listed above, the amount of Child Tax Credit you're eligible for is reduced ("phased out") by $50 for each $1,000 your modified AGI is above the income threshold. For example, if you're Married Filing Jointly making $151,000 and your child is under 6, you’re eligible for a total credit of $3,550. 

You’ll still qualify to receive $2,000 per child until your modified AGI in 2021 exceeds

• $400,000 if married and filing a joint return; or
• $200,000 for all other filing statuses

Take a look at Form 8812 as that form show the calculation for the credit.   

Child Tax Credit Info Center  Everything you need to know about the Child Tax Credit....